By pricing incorrectly at MLS launch, a seller misses out on qualified buyers and it can take weeks or months longer to sell your home. Ambitious pricing can result in selling for less than market value as the seller must reduce the price in order to compete with newer listings with competitive pricing. Pricing properly from the onset will net you the most amount on your sale.
Pricing properly is done as a strategy to drive the most buyers and agents to the home in order to sell the home for the highest price possible. Price does not determine value. The market determines value. Market value is the highest price a buyer is willing to pay (ceiling price) and the lowest price a seller is willing to accept (floor price).
The higher the list price the lower the percentage of buyers that will view your home reducing the chance of receiving an offer.
Pricing should be thought of as a marketing strategy not a goal.